The Centre has proposed to set up a national mineral regulatory authority to monitor mining-related activities and take steps to curb illegal mining in the country.

The government decision follows suggestions from the Group of Ministers (GoM) headed by Union Finance Minister Pranab Mukherjee constituted to vet the proposed Mines and Minerals (Development and Regulation) Bill, which is likely to come up in the ongoing monsoon session of Parliament.

The proposal to set up the mining regulatory authority will be included in the Bill and tabled in Parliament for its approval.

The members of the GoM, including Union Law Minister M Veerappa Moily and Minister for Commerce Anand Sharma, have favoured setting up a strong regulatory mechanism to prevent plundering of mineral wealth, especially by those in power. Karnataka’s case, where three ministers from the BJP-led State government were facing charges of involvement in illegal iron ore mining, was among the examples given to press the need for a monitoring authority.

The regulatory body, to be formed by the Ministry of Mines, should oversee mining-related activities, including management of mineral wealth, by curbing illegal mining and proper auctioning of ore. The GoM also urged the Mines Ministry to probe the possibility of giving 26 per cent stake in mining companies to people whose lands had been acquired for the activity. This will ensure that the benefits of mining reach the impoverished tribal population, the panel said.

The GoM’s suggestion to share the inclusive growth in the mining sector with affected people may help decrease the influence Maoists have among the tribals of mineral-rich states, a senior Ministry official told Deccan Herald. The panel has also asked the Ministry to work out the modalities on how the stake could be given to those who lost land to mining activities.
DH News Service

The proposals
*GoM headed by Pranab Mukherjee constituted to set up regulatory body
*Mines and Minerals (Development and Regulation) Bill likely to be introduced in
Parliament
*Karnataka’s mining scam taken as example for need to protect mineral wealth
*Regulatory body to be formed by Ministry of Mines
*GoM proposes 26 per cent stake in companies to people whose lands had been acquired for mining

Bangalore: KIOCL (formerly Kudremukh Iron Ore Ltd), a state-owned enterprise run by the steel ministry, is considering acquisition of Tungabhadra Steel Products (TSPL), another Karnataka-based public sector firm. TSPL is a sick unit under the heavy industries ministry.

KIOCL CMD K Ranganath said the company might be required to invest Rs 150 crore to acquire TSPL and take care of its 100 employees.

“The ministry of heavy industries has approached us. We are in talks to have clear picture on various aspects in connection with the acquisition,” he said. KIOCL would acquire TSPL only if it was free from any liabilities, he added.

Ranganath added that TSPL had a government loan of Rs 227 crore and a loan of Rs 18 crore from the SBI. The union government is considering waiving its loan along with interest.

The company should negotiate with SBI to arrive at some decision over its loan. KIOCL will not take responsibility to settle wage arrears between 1992 to 2010, he added.

“We can acquire the company provided its balance sheet is clear, without any liabilities,” he said. If all these demands are met, the company will go for valuing TSPL for acquisition, he added.

If TSPL were to be acquired, he said its employees experienced in structural fabrication work would be helpful to the company. TSPL also has a mini hydel power plant with a capacity of 4 mw.

TSPL was established in 1960 to supply structural fabrications to Tungabhadhra dam under construction near Hospet in Karnataka. After the dam was completed, the business volumes to TSPL declined and it turned sick.

TSPL is doing structural fabrication work on contract basis.

He said TSPL has a fabrication facility, dedicated railway line cum sidings along with 88 acres.

KIOCL is looking at expansion plans at its Mangalore Pellet Plant. It is also weighing options on setting up an integrated steel plant in a joint venture with Bangalore-based United Telecom.

KIOCL, which has a cash reserve of about Rs 1,200 crore, reported a loss of Rs 177 crore last fiscal, compared with Rs 24 crore profit the previous year.

The company's turnover also declined to Rs 992 crore from Rs 1,228 crore during the same period. The loss was due to a shutdown in its captive iron mining facility in Kudrehmukh in 2005, following directions from the SC.

The central government is planning to ban iron ore exports or restrict the quantum of export to protect the rich mineral wealth of the country, Steel Minister Virbhadra Singh said Saturday.

'We will ban iron ore exports. If that is not possible, we will restrict it,' Singh told reporters at the Jindal steel plant in Tornagal near Bellary, about 320 km from here.

Endorsing the Karnataka government's decision to ban iron ore export from the state, he said it was imperative to ensure that the mineral reserves were first used for value addition to produce steel.

The government has set a production target of 140 million tones of steel for this fiscal (2010-11) to meet the growing demand for the metal by multiple sectors.

Welcoming the state ban on iron ore export, JSW Steel Ltd vice-chairman and managing director Sajjan Jindal said the government should encourage setting up new steel plants for first use of the rich iron ore in the region.

'The ban should be in phases of five years so that new steel plants can come up to utilise the iron ore for value addition,' Jindal said.

In a related development, the central government has proposed to set up a national mineral regulatory authority to monitor mining related activities and curb illegal mining.

The decision is based on the suggestion by the group of ministers headed by Finance Minister Pranab Mukherjee.

'The government has decided to introduce the Mines and Minerals (Development and Regulation) Bill in the current session of Parliament,' Law Minister M. Veerappa Moily told reporters here.

The amendment will enable the government to set up the regulatory authority and check illegal mining.

BELLARY: A delegation of Indian steel companies would soon meet Prime Minister Manmohan Singh to discuss their problems, including availability of raw material and allotment of mining leases.

JSW Steel Company MD Sajjan Jindal told reporters here on Saturday that the steel plants have been facing a lot of problems with regard to the raw material. Mining lobby has become a threat to these companies. This lobby opposes establishment of steel plants and only intends to export the extracted iron ore, he said.

He said that the Karnataka government’s decision to ban export of iron ore is good. The steel companies here should have their own mining leases to sustain their production facilities. Importing or purchasing of iron ore to run steel industries would be a costly and risky affair, he said.

Dr. Nowal, in his welcome note, threw light on the achievements & future plans of JSW.

Virbhadra Singh, Minister of Steel, Govt. of India dedicated the new state-of-the-art Hot Strip Mill at JSW Steel Vijayanagar Works to the Nation today, 31st July 2010. This is the widest and largest Hot Strip Mill in the Country.

Sajjan Jindal, VC&MD of JSW; Dr. Vinod Nowal, Director& CEO, JSW Steel, C.S Verma, Chairman, SAIL and several other dignitaries were also present on the occasion.

On this occasion, Steel Minister also handed over the Steel Minister’s Trophy for the best operating Integrated Steel Plant for the year 2007-08 to Sajjan Jindal. The panel of judges comprising of technologists, economists, consumers of steel and workers’ representative based on a set of criteria covering operational, financial, market, export, quality, customer satisfaction, environment and HR related parameters adjudged JSW Steel the ‘Runners Up’ amongst the best performing integrated steel plants in India.

Dr. Nowal, in his welcome note, threw light on the achievements & future plans of JSW. He said that when the whole world was reeling under the pressures of global economic downturn, JSW went ahead to commission one of the Country’s largest Blast Furnaces. He also spoke about the Company’s plans to commission the largest Sinter Plant, the largest Coke oven plant and the largest beneficiation plant of the Nation in the time to come. Dr.Nowal expressed his happiness on receiving the Steel Minister’s Trophy and complimented all employees and their family members on the occasion.

Sajjan Jindal in his address said, “This is a historical day for the steel industry in India. We are happy to be a partner in the progress of India. The commissioning of new HSM facility at Vijayanagar will enable us to introduce high value products for the automotive sector and specialized steel for the energy sector in India, in addition to strengthening our processes in line with global benchmarks”. Mr. Jindal also congratulated the JSW employees and other stakeholders on being conferred with the Steel Minister’s Trophy for the year 2007-08. He said “Employees are My Strength, Who Convert My Dreams into Reality”.

Addressing a huge gathering at JSW’s Vijayanagar Bellary Works, the Hon’ble Steel Minister, Govt. of India, Shri Virbhadra Singh congratulated JSW Steel for its achievement. He further added, “India is the third largest producer of crude steel in the world, surpassing developed countries like USA and Russia”. He termed JSW as the youngest and the fastest growing Integrated Steel Plant in the Country with novel technologies like Corex and non-recovery coke ovens. He commended JSW for its green and clean environs.

This is the second Hot Strip Mill (HSM) at Vijayanagar. This state-of-the-art HSM at Vijayanagar was completed in March 2010 and the Mill commenced commercial production on April 10, 2010. The new mill has 2250 mm width and a 1.5 mm – 25 mm thickness range, widening the product basket. The increased product basket will facilitate Company’s entry in high-value products including carbon structure steel, high quality carbon steel, IF steel, low alloy steel, API steel (X-80) and structural steel for high growth segments such as oil & gas, shipbuilding & tubing, automotive sector (dual phase steel and trip steel) among others.

Salient features of HSM:-

* Widest and largest HSM in India (of 2250 mm width) and among the few of its kind in the world.
* Capacity – 5 MTPA, on completion of phase 2. (current capacity – 2 MTPA)
* Use of Japanese technology for the first time in India.
* Make HR coils of 25 mm thickness at full width.
* Yield from the HR mill is the highest in the Indian steel industry.

JSW Steel’s Vijayanagar Plant has the current production capacity of 7 Million Tonnes Per Annum and it will become the 10 MTPA capacity plant in 2011, making it the single largest Integrated Steel Plant at a single location in India. JSW Steel has been ranked as the 2nd best operating Integrated Steel Plant in the World among top 35 ‘World Class’ steel makers by World Steel Dynamics as per their latest report of June 2010, based on weighted average score on different parameters.

Indian mining industry has dubbed the Karnataka government’s action of imposing ban on transport of iron ore for export as a move to indirectly help those into illegal mining.

The industry is of the view that the Chief Minsiter, instead of punishing those into illegal activities, has only robbed business from those who are into legal business.
R K Sharma, Secretary-General, Federation of Indian Mineral Indutry (FIMI), said those who are into illegal mining don’t need permit to carry on their business.

“In Karnataka all are into legal mining except some people. Instead of taking administrative measures to set right the system, the Chief Minister has stopped giving permits for transport of ore. He lacks political will to provide good governance. This action will not help in curbing illegal mining as those who are into illegal never take any permits, be it for mining, transport or shipping,” he said.

Sharma said that of the 40 million tonnes of iron ore extracted annually in the State, only 15 per cent is used domestically and the rest is exported. Both the Centre and the State will lose revenue while illegal trade will thrive, he argued.

Sharma said the South Indian chapter of the Association will meet shortly to take a decision on this issue.

Congress’ Santosh Lad, partner of V S Lad Mining Company, said the Chief Minister should justify the reasons for imposing such unreasonable restriction. “We are into mining from last three decades. How can the Chief Minister assume that we are all into illegal mining? We will meet him to educate how the industry works. If we are not heard, then we will approach court,” he said. Lad is an active participant in the Congress padayatra against illegal mining.

He said that mine owners may resort to selling ore to steel plants in other states and later export. There is no restriction on steel industry to export ore. “None can trample my right to conduct legal business. We will find ways of carrying on our business”, he asserted.

K Raghavacharyulu, senior counsel for OMC owned by the Reddy brothers, said trade policies come under the domain of Parliament and the Centre. The prohibiting the exports is unconstitutional and violative of fundamental rights granted under the Constitution.
The counsel said that the state government has jurisdiction over only minor minerals and not major minerals like iron ore.

“Having banned export of iron ore, why doesn’t the Chief Minister ban export of steel and finished product manufactured within the State? The Chief Minister has erred. He is trying to help a particular steel company of Bellary,” he said.
However, the Reddys, on record, have welcomed the Chief Minister’s decision.
The Reddys are mining in Andhra Pradesh and the mainly export through Krishnapatnam port.

Rahul Kumar Baldota of Hospet-based MSPL mining company said that no one takes permit for illegal mining, and hence the Reddys would continue their illegal business through Andhra Pradesh.

Domestic needs

However, Dr Vinod Nowal, Director of Commercial at JSW Steel Ltd, has welcomed the government’s decision.

“Steel industry is purchasing ore at international level. Government should first cater to the domestic needs. Continuous export will exhaust the resources. What will be left for those industries who put up steel plants in future?”, he asked.

A division bench of the Karnataka high court on Tuesday ordered the Union government to take all steps to revive the the once world famous Bharat Gold Mines Limited (BGML) in Kolar Gold Fields (KGF). No global tenders should be floated for the revival, the court ruled.

The division bench comprising justices DV Shylendra Kumar and N Ananda categorically stated that the KGF gold mines should not be handed over to any foreigner for revival. The court also said that the revival of the mines should not be entrusted to the workers’ co-operative of the BGML.

Directing the Union government to explore all possibilities to revive the now defunct mines, the division bench said that if needed, assistance and technical advice must be taken from mining experts.

The bench passed the order while hearing an appeal filed by the BGML challenging a single-judge bench order passed by justice BV Nagarathna on July 3, 2009, stipulating that only global miners should participate in the revival of the mines.

The single judge order had also made it clear that only companies involved in gold mining should be considered, while providing technical help to the workers’ co-operative could be examined.

The case arose after the BGML filed an application in the high court seeking permission to float a global tender to revive the mines. BGML wanted the tender to be opened to all mining companies and not merely gold mining firms.

Karnataka state aims to permanently ban iron ore exports to conserve the raw material for steel makers such as ArcelorMittal, which will be given land for its plant this month, Chief Minister BS Yeddyurappa told Reuters on Monday.

Karnataka, the second largest iron ore producing state in India, banned exports of the commodity from 10 ports in the last month and said it would stop issuing permits to transport ore to other ports for exports.

Karnataka wants iron ore for local use
RELATED NEWS

* Debate: Should India ban iron ore export?

"So many important steel companies have come (to Karnataka) because they are going to get rich iron ore here," Yeddyurappa, told Reuters in an interview in New Delhi.

"They are going to value add to the iron ore here... we are not in favour of permitting it for outside (exports)."

Yeddyurappa said land acquisition for ArcelorMittal's steel plant in the mineral-rich Bellary district of the state was almost complete.

In June, ArcelorMittal, the world's largest steel maker, signed an initial agreement to spend Rs 30000 crore (USD 6.5 billion) to build a 6-million-tonnes-a-year steel plant in the southern Karnataka state.

The southern region of Federation of Indian Mineral Industries had said it would challenge the state's decision in court this week.

Yeddyurappa said land acquisition for the planned ArcelorMittal steel plant in the mineral-rich Bellary district of the state was almost complete and that other facilities and approvals would be expedited.

"They need not require even four years (to start production). It could be even earlier," the chief minister said.

Quote:

Yeddyurappa said Karnataka, well-known for its software exports, aimed to raise its own steel output to 40 million tonnes in the next three to four years from the current 12 million tonnes.

Surya group, one of the leading companies of steel pipes and lighting products is targeting a turnover of Rs. 5000 crore by 2012. The company’s present turnover is Rs 2,000 crore per year.

“In a bid to reach a new turnover target, Surya is investing around Rs 550 crore. The company has started pipe manufacturing at Kutch in Gujarat with an investment of Rs 450 crore. Also an investment of Rs 100 crore has been made at Shimoga in Karnataka where the company will produce both pipes and lighting products. The manufacturing unit for this will commence by next financial year,” said Prateek Singhal, General Manager — Marketing, Surya Roshni Ltd.

The company has steel pipe facilities at Bhuj, Gwalior and at Bahadurgarh. The company manufactures steel pipes at a capacity of 1 million tonnes, which will be doubled in next couple of years. Apart from that, the company’s Bahadurgarh unit manufactures around six lakh tonnes of pipes every year, while the production capacity of Kutch plant is four lakh tonnes per annum.

“The company intends to set up a steel plant in Karnataka apart from infrastructure, cement, power and PVC pipes in the states of Gujarat, MP, Chattisgarh and Uttarakhand. The projected turnover of Surya Group will be Rs 5,000 crore after all the expansions by the end of 2012," said company officials.

Meanwhile, Surya Vijayanagar Steels and Power Ltd, a subsidiary of Surya Roshni, has also signed an memorandum of understanding with the Karnataka government in June this year at the Global Investors Meet to set up a steel plant with an outlay Rs 20,000 crore in Bagalkot district.

MYSORE: The global steel giant Arcelor-Mittal's project to build a steel plant in Karnataka will take off shortly, CM's economic advisor K V Raju said on Wednesday.

Pointing to the launch of three projects signed during the global investors meet in June on a single day by CM B S Yeddyurappa, the economist said the state government is focused on following them up. He indicated that the land acquisition for the mega projects will not be a problem.

Senior officers are appointed as nodal officers and are tasked to follow-up these projects. The Arcelor-Mittal project will begin later this month, he said addressing industrialists during an interaction hosted by the Mysore zone of the Confederation of Indian Industry (CII). According to him, 166 large projects have got nodal officers to track their progress.

Referring to issue of land and water available to base these projects, he stated: "We have worked out details regarding land and water. There will be power available too with the plans for gas-based thermal plants."

CII Karnataka chief Aroon Raman, who partnered with the government during GIM, said the projects are moving forward. Im happy. The government is focused on development, he stated in his opening remarks. Raju added: Rs 5 lakh crore worth projects were signed during the GIM and even if 50 per cent of them materalise, it will be big. I know there are apprehension as to how many projects will get underway and how soon. Even if 50 per cent of the investment flows here, it will be huge, he said matter-of-factly.

Explaining as to how the government is going about to improve economy, Raju, in his session for over an hour, said: Focus in on job-oriented growth. Many of the projects signed during the GIM will get the state there. We need to shift from agriculture to non-agri sector for generation of jobs as 61 per cent employed in the agri sector are contributing 19 per cent to GSDP. There is also a need to increase rural income. A pilot project in 24 taluks spread in six districts has increased the yield owing to a programme. We have extended this to 12 districts now.

He said 2.40 lakh have been trained in skill development and another 4 lakh are in the loop this fiscal. The BJPs promise of 10 lakh jobs in five years will be met this way.

KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) has urged the Karnataka Government to allocate iron ore mine for the company's steel plant at Mangalore in Karnataka.

Speaking at a function to lay the foundation stone for the raw material storage silo at KIOCL's steel plant in Mangalore on Friday, Mr S. Machendranathan, Additional Secretary in the Union Ministry of Steel and Director of KIOCL Ltd, urged the Karnataka Chief Minister, Mr B.S. Yeddyurappa – who was present at the function – to allocate mine to it on a preferential basis.

Stating that the Karnataka Government had organised a global investors' meet at Bangalore in June, where it had sought investments in various sectors, including in the steel industry, Mr Machendranathan said: “Here is an investment looking for a mine. We have already made a lot of investments and request you to allot a mine on a preferential basis. This investment is lying unutilised.”

(KIOCL stopped its mining activities in the Kudremukh region on January 1, 2006, following a Supreme Court directive.)

Mining lease

Mr Ranganath said the Karnataka Government should grant mining lease in Ramanadurga iron ore deposit of Bellary district. In 2003, the Government had decided to allot 50 per cent of the area available in Ramanadurga, he said.

Replying to this, Mr Yeddyurappa said that the existing steel companies in the State and those companies that have signed MoUs to invest in steel industries in the State at the recently concluded global investors' meet will not face any problem for their requirements.

However, the Government will not allow illegal mining, and the export of such ore from the State.

He urged the Prime Minister to convene a meeting of the Chief Ministers of ore-rich States to discuss the issue and come out with a national policy on this matter.

Bangalore, August 16, DHNS: The State Government on Monday submitted to the High Court that nearly 30 million tonnes of iron ore has been exported without any valid permit during the period 2004-2010.

In its objections to the batch of petitions challenging the ban on export of iron ore, the government has contended that the cost of extracting a tonne of ore comes to Rs 300 as against the profit of Rs 5,000.

The mining industry would earn Rs 25,000 crore per annum on the export of 50 million tonne of iron ore, whereas the State would get a meagre Rs 100 crore as royalty.

However, if the ore is converted into steel the Stae would earn Rs 16,000 crore in the form of Central Excise Taxes and Rs 4,000 crore as VAT. This apart, it would also help in the creation of jobs for locals, according to the objection statement.

The government has further contended that the mining industries earned Rs 60,000 crore in 2007-08 by selling 120 million tonne of ore, whereas the domestic profit was Rs 15,000 crore. It has contended that it is inappropriate to let such huge wealth to be amassed by a a select few mining lease holders. In addition, about 60 mining lease holders have flouted all rules by encroaching upon forest land.

Arguing strongly against the exports, the government has stated that there is no provision for the lease holders to export ore in its raw form. The National Mineral Policy 2008 and the Karnataka Mineral Policy of 2008 had no provision providing for export and hence the mining lease holders cannot contend that they have an absolute right to sell the ore in the manner they liked.

Even the Mines and Minerals (Development and Regulation) Act, 1957 and Mineral Concession Rules and Karnataka Forest Act allows the State to regulate exports, the statement said. Stating that the question of export arises only when the country is self-sufficient, the government submitted that India is far from attaining self-sufficiency with the steel production short of demand.

One more petition

Another petition was filed in the High Court on Monday seeking the removal of ban on the export of iron ore. Deccan Mining, Kumaraswamy Exports, S B Minerals and Kareganur Express have contend that the exports were allowed under Foreign Trade (Development and Regulation) Act, 1992 enforced by the Central government. They have argued that the State cannot interfere with the Act by imposing a ban on exports.

Aug. 16: Steel major Arcelor Mittal’s plans to invest Rs 30,000 crore in the state have run into rough weather with around 3,000 farmers here resolving not to let the company occupy their land unless they are given a compensation of Rs 77 lakh for every acre acquired for the project.

Chief Minister B.S. Yeddyurappa had announced that the foundation stone for the six million tonne per annum integrated Arcelor Mittal steel plant would be laid by the month end. But farmers from Kuditini and Hagarinadoni villages of Bellary taluk warn that Arcellor Mittal will not be allowed to lay the foundation stone unless they are given higher compensation.

Farmers staged a dharna before the deputy commissioner’s office on Monday under the umbrella of the Bhoo Santrastara Horata Samiti to protest the government’s failure to give them a higher price.

The agitation is a fallout of several failed rounds of talks between farmers and authorities. Deputy commissioner B. Shivappa had announced a compensation of Rs 12 lakh per acre would be given for land acquired along the roadside and Rs 8 lakh per acre for land in the interior, for the steel plant. But this has not satisfied the farmers, who find the offer very inadequate.

U. Basavaraj of Karnataka Prantha Raitha Sangha says compensation announced does not reflect the steep rise in land value in the area and surrounding villages located alongside national highway 63, between Bellary and Hospet.

“The government must fix Rs 77 lakh per acre as compensation considering how valuable the land is here,” he says, warning that if the government does not give in to their demad, Arcellor Mittal will not be allowed to lay the foundation stone for its steel plant as planned.

Mr Shivappa, meanwhile told the agitating farmers that he had conveyed their demand to the minister for industries Murugesh Nirani and the high level committee constituted to clear GIM projects and was waiting to hear from them.

Farmers of Agadi and Budaghatti in the taluk staged a massive protest on Monday against the acquisition of agricultural land for setting up an industry of Tata Steel.

The farmers, who took out the protest rally from the Purasiddeshwara temple on tractors and bikes, raised slogans against the State Government’s “anti-farmer policies”. Former minister Basavaraj Shivanna, organic agriculture expert Nigalingappa Baseganni and leader Jagadish Baseganni declared that the farmers have decided to give up their lives but not their lands.

“We have been dependent on agriculture for so many years and now if you decide to snatch our lands for setting up an industry, we will all end up on the streets,” they said. The farmers also pointed that the lands in Agadi and Budaghatti were fertile plains and never failed to produce an yeild even during years of failed monsoon.

The protestors threatened to go on a violent struggle if their land is acquired by force.

NEW DELHI: Taking forward the proposal to jointly set up a steel plant in Karnataka with Japanese steel major Nippon Steel, state-owned NMDC is learnt to have offered land and iron ore for setting up about Rs 9,500-crore project.

"NMDC, in a recent communication with Nippon Steel, has said it will provide about 2,500 acres of land, which the Karnataka government has promised to give it in the Bellary- Hospet region of the state, for the proposed steel plant.

"In addition, NMDC said it can provide iron ore as well. In lieu of the land and iron ore, it has asked Nippon Steel to bring its technology to India and fund the JV project," a senior government official said.

Neither, NMDC nor Nippon Steel could be contacted for their comments.

However, last month NMDC Chairman had confirmed that the country's largest iron ore producer is in talks with the world's fourth-largest steel firm for setting up a steel plant with an initial annual production capacity of 2 million tonnes in Karnataka.

The official, however, said the talks between the companies have not reached any advanced stage. Earlier, NMDC was also reported to be in talks with Tata Steel for the JV project in Karnataka. State-owned RINL had also offered to partner the company for the venture, the official said.

NMDC had earlier signed a deal with the Karnataka government to set up a steel plant in the state.

Besides Nippon, NMDC is also talking to another Japanese firm Kobe Steel for a joint venture project to produce iron nuggets in Andhra Pradesh at the premises of Sponge Iron India (SIIL), which has been amalgamated with it last month. SIIL has an annual capacity to produce of 60,000 tonne of sponge iron.

The mining firm is already in process of starting construction work for its over 15,000 crore integrated project in Chhattisgarh by November-December this year, Som had earlier said. The Chhattisgarh plant to come up in backward district of Bastar, will have an annual production capacity of 3 million tonnes.

NMDC will be the second steel PSU, after SAIL, to be in talks with Japanese companies. SAIL is in talks with Posco to set up over Rs 11,000-crore integrated steel plant in Jharkhand. SAIL is also considering setting up downstream mills to produce specialised steel products with Posco in Maharashtra.

Secretary to the Union Ministry of Steel Atul Chaturvedi will be meeting the State Chief Secretary to discuss about problems related to KIOCL.

Addressing a press meet at the KIOCL premises here on Sunday, Chaturvedi said that it is difficult for KIOCL to expand its operations without State government’s help.

“The Supreme Court order, which stopped mining in Kudremukh, is a major setback for the KIOCL Limited. We have already written to the State government and we will hold discussion with Chief Secretary on Monday,” he added.

“We are not going to mine in Kudremukh again. However, we will move curative petition at the Supreme Court to remove 24 million tonnes of iron ores, which is lying in withered condition at Kudremukh after the Apex Court stopped mining activities in Kudremukh in 2003,” he said adding that it will create environment issues as the withered ore is being washed away to the Bhadra river every rainy season.

He said that the Ministry was striving to re-establish KIOCL for the past one-and-a-half year. However, KIOCL Limited is not a loss making company, he added. Talking about the proposals of opening a police commando training centre and an eco-tourism project at Kudremukh, Chaturvedi said, “we will consider the State government’s proposals. However, the State also should give us back due co-operation to re-establish the company.”

Desilting

Chaturvedi said that the desilting work being taken up in Lakhya dam is not a non-forest activity. “We are not doing any non-forest activity. Once the desilting work was done, water can be supplied to Mangalore City too. Moreover, desilted materials can be used for other purposes too,” he said.

Conservation of ore

Chaturvedi said that there is need of taking steps to conserve iron ore for future as the demand increases every year. “The current requirement of iron ore in the nation is 70 million tonnes per year. While the requirement of iron ore will be 120 million tonnes by 2012, the demand may cross 200 million tonnes by 2020,” he explained.

Talking about the machineries lying idle in Kudremukh, Chaturvedi said that the Ministry is in touch with the Steel Authority of India (SAIL) to lease those equipment to them. “We will ask the SAIL to send a team to conduct survey in Kudremukh,” he added.

Secretary to the Union Ministry of Steel George Elias and KIOCL Chairman and Managing Director K Ranganath were present.

Asia’s first sloth bear sanctuary at Daroji in Bellary district is under severe threat as the State Government, by violating environmental norms, has granted permission for a major steel plant around its vicinity. It has also begun the process of land acquisition.

Less than 16 years of its establishment, the Daroji sanctuary already has its fate in jeopardy.

A mega steel plant is likely to come up at Gadiganur village, located just 500 meters away from the Sanctuary. Shaken wildlife enthusiasts in and around Bellary district have now written to Union Environment Minister Jairam Ramesh requesting him to mediate.

“It has come as a shock for us. We never even imagined that a huge steel industry is being planned adjacent to this sanctuary. We realised only when local people informed us about this,” said K S Abdul Samad, President, Society for Wildlife Adventure and Nature (Swan).

Some of the wildlife enthusiasts who tried to dig out the information had another shock when they found that a notification has already been issued in this connection.

“We were appaled to find out that the Gadiganur village and a portion of the sanctuary has been earmarked for the steel plant,” said Samad. Another wildlife enthusiast, Santosh Martin, who is also the honourary wildlife warden, Bellary said the six million-tonne capacity plant is being planned at a total area of 5,500 acres.

“The Gazette notification is over, acquisition may begin anytime. Though officials say it will come up at a distance of three to four kms away from the sanctuary, their map says a different story. We are planning a protest to save the sloth bear sanctuary,” he said.

The plant, according to some official sources, falls between the bear sanctuary and the World Heritage site, Hampi and is also said to be detrimental even to the latter.

Daroji

The sloth bear sanctuary, being an unique one and the first of its kind in the country is a rock-strewn hillock that stretches between Daroji of Sandur taluk and Ramasagar of Hospet Taluk in Bellary district. The place has been an abode of Indian sloth bears since ages.

The entire hill ranges around Hampi vicinity are believed to be the mythological ‘Kishkinda’ valley, an abode of Lord ‘Hanuman’ and ‘Jambavantha’ (the bear). Following the efforts of former Minister and Congress leader M Y Ghorpade, the state declared 5,587.30 hectares of Bilikallu reserve forest as the Daroji Bear Sanctuary.

Apart from 120 sloth bears, the place is home to leopards, hyena, jackals, wild boars, porcupine, pangolins, star tortoise, monitor lizard, mongoose, pea fowls, partridges, painted spur fowl and quails. This unique ecosystem also hosts over 200 species of birds and 50 species of butterflies.